Neo Financial lands $132M credit facility backed by Canadian credit unions
What's the deal? Neo Financial has closed a US$135.7M syndicated warehouse facility led by ATB FinancialDealroom has a profile for this one. Try Dealroom →, which acted as administrative agent, lead arranger, and sole bookrunner. The lending capital will expand committed funding for the Calgary-based company's credit card receivables.
Who's in? The syndicate includes Canadian credit union participants Vancouver City Savings Credit Union (VancityDealroom has a profile for this one. Try Dealroom →), Beem Credit Union, Alterna Savings and Credit Union, and Innovation Federal Credit UnionDealroom has a profile for this one. Try Dealroom →. ATB structured and led the deal, which includes an accordion feature allowing an upsize to US$183.3M.
What's the endgame? Founded in 2019, Neo is a technology company building financial products for Canadians, from credit cards to high-interest savings and mortgages. It serves more than one million customers and has raised over US$476.7M to date.
Why now? The facility gives Neo capacity to keep originating and funding credit card receivables as it scales. "ATB Financial structured and led the syndicate to deliver a scalable warehouse aligned with Neo's growth," the company said.
Why credit unions? Neo is framing the deal as the start of broader partnerships with Canada's cooperative lenders. "Credit unions are important partners in the financial system we want to help build," said Allemander Neto, chief financial officer of Neo Financial. "Our ambition is to build lasting funding relationships with credit unions that see an opportunity to grow alongside us."
The signal: At roughly $132 million, the facility sits in the top third of financings by size — a meaningful vote of confidence from traditional lenders in a fintech balance sheet. The structure points to credit unions increasingly backing scaleups as funding partners rather than just competitors.
Read more: ca.finance.yahoo.com
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